Chevron Corporation(CVX) - Stock detail

Chevron Corporation

US
CVX
Chevron Corporation(Listing date: 06/24/1921)

Chevron Corporation was founded in Delaware in 1926. The company manages investments in subsidiaries and affiliates and provides administrative, financial, management and technical support to U.S. and international subsidiaries engaged in integrated energy and chemical operations. Upstream operations primarily include the exploration, development and production of crude oil and natural gas; processing, liquefaction, transportation and regasification related to liquefied natural gas; transportation of crude oil through major international petroleum export pipelines; transportation, storage and marketing of natural gas; and a gas-to-liquids plant. Downstream operations primarily include the refining of crude oil into petroleum products; marketing of crude oil and refined products; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car; and the manufacture and sale of commodity petrochemicals, industrial plastics, and fuel and lubricant additives.

AI Value AnalystHold
Overall Rating3.3/10
Generated at:2026-06-03 17:39:37
Analysis based on 5 financial reports: 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, and 2025-03-31. Current stock price as of 2026-06-03 close: $189.71. Data includes comprehensive financial metrics including liquidity ratios, solvency ratios, profitability margins, and valuation multiples.
Overview

Chevron Corporation (CVX) is a major integrated energy and chemicals company navigating a challenging period with significant year-over-year declines in profitability metrics. The company maintains a stable financial base with moderate leverage, but its earnings power has weakened substantially, leading to valuation concerns based on recent performance.

Valuation
2/10
Profitability
2/10
Financial health
6/10
Operation Advice
  • Current investors should maintain their position to await potential earnings recovery and benefit from dividends.
  • New investors should wait for clearer signs of sustained earnings improvement or a more attractive entry point before establishing a position.
  • The stock appears overvalued based on recent earnings, making immediate buying difficult to justify.

Valuation

P/E TTM
34.84
P/E LYR
19.52
P/B MRQ
2.06
P/S TTM
--
AI Analysis
  • Valuation metrics present a mixed picture heavily influenced by depressed earnings. The trailing P/E is very high at 34.84, indicating the stock appears overvalued relative to recent earnings power, though forward-looking metrics suggest the market anticipates an earnings recovery.
  • The trailing twelve months (TTM) P/E is very high at 34.84, reflecting the significant drop in earnings over the past year.
  • This suggests the market price has not fallen in proportion to the earnings decline.
  • The forward-looking Dynamic PE is 19.52, implying the market is expecting a recovery in earnings.
  • If we annualize the Q1 2026 EPS of $1.12, we get ~$4.48, which at the current price yields a P/E of ~42.3.
  • This indicates the market expects much stronger subsequent quarters.
  • The Price-to-Book (PB) ratio is 2.06, which is a reasonable multiple for a major integrated oil company.
  • The Price-to-Sales (PS-TTM) ratio is 1.99, which is a standard multiple for the sector and does not signal extreme overvaluation.
  • Based on the very high TTM P/E of 34.84, the current stock price appears overvalued relative to its recent earnings power.
  • The market is clearly pricing in a future earnings recovery.
  • However, based solely on the realized financial performance from the provided data, the stock is not cheap.
Valuation trend

Profitability

ROE TTM
6.13%
Net margin
4.72%
Gross margin
41.85%
Total revenue
48.61B
AI Analysis
  • Profitability has weakened significantly with severe year-over-year declines in net income and compressed margins. Net income declined by -36.86% in Q1 2026 and -30.36% for full year 2025, while returns on equity and assets are low.
  • Profitability has weakened significantly, a critical finding from the data.
  • Net income has experienced severe year-over-year declines: -36.86% in Q1 2026, -30.36% for the full year 2025, and similar declines in prior quarters.
  • This trend is the dominant feature of the current financial picture.
  • The net margin has compressed from 7.38% in Q1 2025 to 4.72% in Q1 2026.
  • The gross margin has shown some resilience, improving to 41.85% in the latest quarter from 39.91% a year prior.
  • This suggests cost control or mix benefits, but this has not flowed through to the bottom line.
  • Return on Equity (ROE-TTM) is 6.13% and Return on Assets (ROA-TTM) is 3.55%.
  • These are low returns, especially the ROE, which is below the cost of capital for many firms.
  • This indicates inefficient generation of shareholder value from the equity base based on trailing results.
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM--4.01%5.57%7.26%6.13%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue47.61B92.43B142.16B189.03B48.61B

Financial health

Debt/Asset
42.54%
Current ratio
1.09
Quick ratio
0.84
Cash ratio
0.84
AI Analysis
  • The financial health of Chevron appears stable but shows signs of strain from lower earnings, with adequate liquidity, moderate solvency, and a balance sheet that is not a primary concern despite pressure on profitability and cash flow.
  • The financial health of Chevron appears stable but shows signs of strain from lower earnings.
  • The current ratio of 1.09 and quick ratio of 0.84 indicate adequate short-term liquidity.
  • The quick ratio being below 1 suggests a relatively high level of inventory or other less liquid current assets.
  • The debt-to-asset ratio of 42.54% is moderate for a capital-intensive industry like integrated oil & gas.
  • It provides a balance between leverage for growth and financial stability, and is not at an alarming level.
  • The balance sheet is not a primary concern.
  • The main pressure points are evident in the profitability and cash flow generation, as reflected in the declining net income figures.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset41.47%41.29%40.09%40.69%42.54%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio1.081.001.151.151.09